Six Flags (FUN): Assessing Valuation After Recent Share Price Decline

Six Flags Entertainment (FUN) has seen its stock struggle recently, down nearly 5% over the past month and sitting at $13.53 as of the latest close. Investors are watching to see how these moves align with the company’s recovery efforts.

See our latest analysis for Six Flags Entertainment.

After a steep drop of nearly 38% in the past month, Six Flags Entertainment’s momentum has clearly faded. Its 1-year total shareholder return is down more than 70%. Recent swings suggest investors remain skeptical about near-term prospects, even as management pursues a turnaround.

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With shares now trading at a marked discount to analyst targets, the key question is whether Six Flags is undervalued at current levels or if the market is already bracing for limited growth ahead. Is this a buying opportunity, or are concerns fully reflected in the price?

Most Popular Narrative: 49.7% Undervalued

According to the most widely followed narrative, Six Flags Entertainment’s fair value is set far higher than the last close of $13.53, reflecting a potential rebound if future projections are achieved.

Consolidation synergies from the Cedar Fair merger, ongoing portfolio optimization, and aggressive cost discipline (targeting $120M in permanent annual savings) are expected to structurally lower the cost base. This could raise net margins and accelerate deleveraging through more robust free cash flow.

Read the complete narrative.

What’s hidden behind this valuation? The entire narrative hinges on bold financial turnaround assumptions, especially on margin expansion and game-changing cost savings. Which future milestones are priced in? Get the full story to see what could really move this stock.

Result: Fair Value of $26.92 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, significant debt and unpredictable weather could quickly undermine Six Flags’ turnaround momentum. This raises fresh doubts around the recovery story.

Find out about the key risks to this Six Flags Entertainment narrative.

Build Your Own Six Flags Entertainment Narrative

If you have a different take or want to dig into the details yourself, you can shape your own perspective in just a couple of minutes, Do it your way.

A great starting point for your Six Flags Entertainment research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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